Gold loan business seems to be garnering huge opportunities to financial service providers. While companies like Muthoot finance and Manappuram finance have already marked themselves as established players in the gold loan segment, non banking finance company, FedBank Financial Services has also made an entry into the domain via its product called 'Fast gold loan'.
The company has marked itself as being one of the fastest growing company in the gold loan business through its branch network in states of Tamil Nadu, Karnataka and Andhra Pradesh, said P. K. Mohapatra, Deputy General Manager and Acting Head, Fedbank Financial Services.
He added that in a time frame of 7 months, the company has disbursed gold loans worth Rs 350 crore.
Speaking about the interest rates charged on these loans, Mr Dilip Maloo, Vice-President and Head of Finance, said that the interest rate lies in the range of 12-23%, with rates dependent on where the borrower lies in the risk profile meter. The loan amount varies from Rs 3000 to Rs 10 lakh maximum.